Teachers Mutual Bank investment loan changes Talk to us Phone us Email us Breadcrumbs Teachers Mutual Bank About us Media releases Media releases 2015 Teachers Mutual Bank investment loan changes 17 August 2015 17 August 2015 Teachers Mutual Bank investment loan changes Today Teachers Mutual Bank has announced a three-pronged approach to limiting investment home loan growth in response to APRA’s (Australian Prudential Regulation Authority) request to ADIs (Authorised Deposit-taking Institutions) to curb lending in this space. Teachers Mutual Bank and its new division Unibank, has introduced the following changes: Tightening the Loan to Value Ratio (LVR) requirement for investors to 85% prior to capitalising the applicable Lenders Mortgage Insurance (LMI) premium. Removing access to the top interest tier for investors (see table below) on its Solutions Plus Home Loans. Increasing servicing requirement, with investment home loan applicants required to demonstrate a surplus of $500 above their ability to service the loan. “These product and policy changes aim to slow down our investment home loan growth and demonstrate our commitment to meeting APRA’s requirements” said Steve James, CEO of Teachers Mutual Bank. Although Teachers Mutual Bank’s percentage growth in the first quarter will be boosted as a result of its recent merger with Unicredit, it will focus on organic growth in the immediate future. New Solutions Plus Home Loan Tiers: Owner Occupiers Investors Solutions Plus Home Loan tiers Interest Rate1 p.a Comparison Rate p.a* Solutions Plus Home Loan tiers Interest Rate1 p.a Comparison Rate p.a* $150,000 - $249,999 4.77% 5.02% $150,000 - $249,999 4.77% 5.02% $250,000 - $499,999 4.57% 4.82% $250,000 - $499,999 4.57% 4.82% $500,000 – $749,999 4.54% 4.79% $500,000+ 4.54% 4.79% $750,000+ 4.47% 4.72% - - - For the present, members who have applied for an investment home loan and have not yet funded will proceed with the current approved structure. If a loan has exceeded its 90-day approval and requires reassessment, the new conditions and structure detailed in this communication will be applied. All previously funded loans will remain in place and unaffected by the changes. *Note: Comparison rates quoted are based on $150,000 for a term of 25 years. Rates apply to secured loans only. This Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different Comparison rate. Further information: Rachel Fisk, PR and Corporate Affairs Officer, Teachers Mutual Bank on 02 9435 9425 or 0467 800 414 About Teachers Mutual Bank Teachers Mutual Bank is the leading Australian bank servicing employees in the education sector and their families. After a successful merger with Western Australia’s Unicredit on 1 August 2015, Teachers Mutual Bank now has over 173,000 members and more than $5 billion in assets. Credit facilities are only provided to members.
